Shareholders back Imperial Energy takeover

Oil explorer Imperial Energy is set to be taken over by India's Oil & Natural Gas Corporation after the majority of the group's shareholders backed the deal.

Oil explorer Imperial Energy is set to be taken over by India's Oil & Natural Gas Corporation after the majority of the group's shareholders backed the deal.

Shareholders owning 96.8 per cent of Imperial's equity have approved the £12.50-a-share offer form the Indian firm, which values the group at £1.3bn. The support passes the 90 per cent approval threshold that was needed for the deal to go through, and ends concerns that Oil & Natural Gas Corporation (ONGC) would pull out of the offer if the milestone was not met.

ONGC first made a bid for the company in August last year when the price of oil stood at $130 per barrel. But the price has since collapsed to around $40 per barrel, causing the Indian group to try to delay the takeover.

There had also been speculation that the group may try to invoke a so-called material adverse change clause, which enables companies to pull out of takeovers if there is a significant change in the market that could damage the prospects for the business.

But ONGC issued a statement saying that it will now proceed with the takeover.

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